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AHM-530 Sample Questions Answers

Questions 4

Dr. Leona Koenig removed the appendix of a plan member of the Helium health plan. In order to increase the level of reimbursement that she would receive from Helium, Dr. Koenig submitted to the health plan separate charges for the preoperative physical examination, the surgical procedure, and postoperative care. All of these charges should have been included in the code for the surgical procedure itself. Dr. Koenig's submission is a misuse of the coding system used by health plans and is an example of:

Options:

A.

Upcoding

B.

A wrap-around

C.

Churning

D.

Unbundling

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Questions 5

Social health maintenance organizations (SHMOs) and Programs of All-Inclusive Care for the Elderly (PACE) are federal programs designed to provide coordinated healthcare services to the elderly. Unlike PACE, SHMOs

Options:

A.

are reimbursed solely through Medicaid programs

B.

provide extensive long-term care

C.

are reimbursed on a fee-for-service basis

D.

limit benefits to a specified maximum amount

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Questions 6

The provider contract that the Canyon health plan has with Dr. Nicole Enberg specifies that she cannot sue or file any claims against a Canyon plan member for covered services, even if Canyon becomes insolvent or fails to meet its financial obligations. The contract also specifies that Canyon will compensate her under a typical discounted fee-for-service (DFFS) payment system.

During its recredentialing of Dr. Enberg, Canyon developed a report that helped the health plan determine how well she met Canyon's standards. The report included cumulative performance data for Dr. Enberg and encompassed all measurable aspects of her performance. This report included such information as the number of hospital admissions Dr. Enberg had and the number of referrals she made outside of Canyon's provider network during a specified period. Canyon also used process measures, structural measures, and outcomes measures to evaluate Dr. Enberg's performance.

Canyon used a process measure to evaluate the performance of Dr. Enberg when it evaluated whether:

Options:

A.

Dr. Enberg's young patients receive appropriate immunizations at the right ages

B.

Dr. Enberg's young patients receive appropriate immunizations at the right ages

C.

The condition of one of Dr. Enberg's patients improved after the patient received medical treatment from Dr. Enberg

D.

Dr. Enberg's procedures are adequate for ensuring patients' access to medical care

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Questions 7

The actual number of providers included in a provider network can be based on staffing ratios. One true statement about staffing ratios is that, typically:

Options:

A.

A small health plan needs fewer physicians per 1,000 than does a large plan.

B.

A closely managed health plan requires fewer providers than does a loosely managed plan.

C.

Physician-to-enrollee ratios can be used directly only by network-within-a-network model HMOs.

D.

Medicare products require fewer providers than do employer-sponsored plans of the same size.

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Questions 8

The Portway Hospital is qualified to receive Medicaid subsidy payments as a disproportionate share hospital (DHS). The DHS payments that Portway receives are

Options:

A.

Made for services rendered to specific patients

B.

Made with matching state and federal funds

C.

Included in the Medicaid capitation payment made to patients’ health plans

D.

Defined as cost-based reimbursement (CBR) equal to 100% of Portway’s reasonable costs of providing services to Medicaid recipients

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Questions 9

The provider contract that Dr. Lorena Chau has with the Fiesta Health Plan includes an evergreen clause. The purpose of this clause is to:

Options:

A.

Allow Fiesta to change or amend the contract without Dr. Chau's approval as long as the modifications are made in order to comply with new legal and regulatory requirements

B.

Prohibit Dr. Chau from encouraging her patients to switch from Fiesta to another health plan

C.

Prohibit Dr. Chau from encouraging her patients to switch from Fiesta to another health plan

D.

Assure that Dr. Chau provides Fiesta members with healthcare services in a timely manner appropriate to the member's medical condition

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Questions 10

A health plan that delegates designated credentialing activities to an NCQA-centered or a Commission/URAC-centered credentials verification organization (CVO) is exempt from the due-diligence oversight requirements specified in the NCQA credentialing standards for all verification services for which the CVO has been certified:

Options:

A.

True

B.

False

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Questions 11

The provider contract that Dr. Nick Mancini has with the Utopia Health Plan includes a clause that requires Utopia to reimburse Dr. Mancini on a fee-for-service (FFS) basis until 100 Utopia members have selected him as their primary care provider (PCP). At that time, Utopia will begin reimbursing him under a capitated arrangement. This clause in Dr. Mancini's provider contract is known as:

Options:

A.

an antidisparagement clause

B.

a low-enrollment guarantee clause

C.

a retroactive enrollment changes clause

D.

an eligibility guarantee clause

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Questions 12

The following statement(s) can correctly be made about contracting and reimbursement of specialty care physicians (SCPs):

Options:

A.

Typically, a health plan should attempt to control utilization of SCPs before attempting to place these providers under a capitation arrangement.

B.

Forms of specialty physician reimbursement used by health plans include a retainer and a bundled case rate.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Questions 13

The following statements describe two types of HMOs:

The Elm HMO requires its members to select a PCP but allows the members to go to any other provider on its panel without a referral from the PCP.

The Treble HMO does not require its members to select a PCP. Treble allows its members to go to any doctor, healthcare professional, or facility that is on its panel without a referral from a primary care doctor. However, care outside of Treble's network is not reimbursed unless the provider obtains advance approval from the HMO.

Both HMOs use delegation to transfer certain functions to other organizations. Following the guidelines established by the NCQA, Elm delegated its credentialing activities to the Newnan Group, and the agreement between Elm and Newnan lists the responsibilities of both parties under the agreement. Treble delegated utilization management (UM) to an IPA. The IPA then transferred the authority for case management to the Quest Group, an organization that specializes in case management.

Both HMOs also offer pharmacy benefits. Elm calculates its drug costs according to a pricing system that requires establishing a purchasing profile for each pharmacy and basing reimbursement on the profile. Treble and the Manor Pharmaceutical Group have an arrangement that requires the use of a typical maximum allowable cost (MAC) pricing system to calculate generic drug costs under Treble's pharmacy program. The following statements describe generic drugs prescribed for Treble plan members who are covered by Treble's pharmacy benefits:

The MAC list for Drug A specifies a cost of 12 cents per tablet, but Manor pays 14 cents per tablet for this drug.

The MAC list for Drug B specifies a cost of 7 cents per tablet, but Manor pays 5 cents per tablet for this drug.

The following statements can correctly be made about the reimbursement for Drugs A and B under the MAC pricing system:

Options:

A.

Treble most likely is obligated to reimburse Manor 14 cents per tablet for Drug A.

B.

Manor most likely is allowed to bill the subscriber 2 cents per tablet for Drug A.

C.

Treble most likely is obligated to reimburse Manor 5 cents per tablet for Drug B.

D.

All of the above statements are correct.

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Questions 14

The vision benefits offered by the Omni Health Plan include clinical eye care only. The following statements describe vision care received by Omni plan members:

• Brian Pollard received treatment for a torn retina he suffered as a result of an accident

• Angelica Herrera received a general eye examination to test her vision

• Megan Holtz received medical services for glaucoma

Of these medical services, the ones that most likely would be covered by Omni's vision coverage would be the services received by:

Options:

A.

Mr. Pollard, Ms. Herrera, and Ms. Holtz

B.

Mr. Pollard and Ms. Herrera only

C.

Mr. Pollard and Ms. Holtz only

D.

Ms. Herrera and Ms. Holtz only

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Questions 15

A provider group purchased from an insurer individual stop-loss coverage for primary and specialty care services with an $8,000 attachment point and 10% coinsurance. If the group's accrued cost for the primary and specialty care treatment of one patient is $10,000, then the amount that the insurer would be responsible for reimbursing the provider group for these costs is:

Options:

A.

$200

B.

$1,000

C.

$1,800

D.

$9,000

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Questions 16

As an authorized Medicare+Choice plan, the Brightwell HMO must satisfy CMS requirements regulating access to covered services. In order to ensure that its network provides adequate access, Brightwell must

Options:

A.

Allow enrollees to determine whether they will receive primary care from a physician, nurse practitioner, or other qualified network provider

B.

Base a provider’s participation in the network, reimbursement, and indemnification levels on the provider’s license or certification

C.

Define its service area according to community patterns of care

D.

Require enrollees to obtain prior authorization for all emergency or urgently needed services

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Questions 17

An health plan’s contract negotiation team consists of several skilled individuals from different areas. At least one of the members is responsible for evaluating the wording of specific clauses to ensure that the health plan’s rights are protected, as well as to ensure that the contract is in compliance with state and federal regulation. By profession, this member of the contract negotiation team is typically

Options:

A.

Amedical director

B.

An attorney

C.

Afinancial manager

D.

Aclaims manager

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Questions 18

The method of pharmaceutical reimbursement under which a plan member obtains prescription drugs from participating network pharmacies by presenting proper identification and paying a specified copayment is the

Options:

A.

Wholesale acquisition cost (WAC) approach

B.

Reimbursement approach

C.

Service approach

D.

Cognitive approach

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Questions 19

If the Oconee Health Plan reimburses its specialty care physicians (SCPs) under a typical retainer method, then Oconee pays SCPs

Options:

A.

Aseparate amount for each service provided, and the payment amount is based solely on a resource-based relative value scale (RBRVS)

B.

Aspecified fee that remains the same regardless of how much or how little time or effort is spent on the medical service performed

C.

Aset amount each month, and Oconee reconciles its payment at periodic intervals on the basis of actual utilization

D.

Aset amount of cash equivalent to a defined time period’s expected reimbursable charges

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Questions 20

Although a health plan is allowed to delegate many activities to outside sources, the National Committee for Quality Assurance (NCQA) has determined that some activities are not delegable.

These activities include

Options:

A.

evaluation of new medical technologies

B.

overseeing delegated medical records activities

C.

developing written statements of members’ rights and responsibilities

D.

all of the above

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Questions 21

The Gardenia Health Plan has a national reputation for quality care. When Gardenia entered a new market, it established a preferred provider organization (PPO), a health maintenance organization (HMO), and a point-of-service product (POS) to serve the plan members in this market. All of the providers included in the HMO or the POS are included in the broader provider panel of the PPO. The POS will be a typical two-level POS that offers a cost-based incentive plans for PCPs, and the HMO is a typical staff model HMO.

The following statement(s) can correctly be made about Gardenia’s establishment of the PPO and the staff model HMO in its new market:

1. When establishing its PPO network, Gardenia most likely initiated outcomes measurement tools and developed collaborative process improvement relationships with providers.

2. To avoid high overhead expenses in the early stages of market evelopment, Gardenia’s HMO most likely contracted with specialists and ancillary providers until the plan’s membership grew to a sufficient level to justify employing these specialists.

Options:

A.

Both 1 and 2

B.

Neither 1 nor 2

C.

1 Only

D.

2 Only

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Questions 22

In most health plan pharmacy networks, the cost component of the reimbursement formula is based on the average wholesale price (AWP). One true statement about the AWP for prescription drugs is that

Options:

A.

AWPs tend to vary widely from region to region of the United States

B.

The AWP is often substantially higher than the actual price the pharmacy pays for prescription drugs

C.

A health plan’s contracted reimbursement to a pharmacy for prescription drugs is typically the AWP plus a percentage, such as 5%

D.

The AWP usually is lower than the estimated acquisition cost (EAC) for most prescription drugs

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Questions 23

In contracting with providers, a health plan can use a closed panel or open panel approach. One statement that can correctly be made about an open panel health plan is that the participating providers

Options:

A.

must be employees of the health plan, rather than independent contractors

B.

are prohibited from seeing patients who are members of other health plans

C.

typically operate out of their own offices

D.

operate according to their own standards of care, rather than standards of care established by the health plan

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Questions 24

The sizes of the businesses in a market affect the types of health programs that are likely to be purchased. Compared to smaller employers (those with fewer than 100 employees), larger employers (those with more than 1,000 employees) are

Options:

A.

more likely to contract with indemnity health plans

B.

more likely to offer their employees a choice in health plans

C.

less likely to contract with health plans

D.

less likely to require a wide variety of benefits

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Questions 25

The Gardenia Health Plan has a national reputation for quality care. When Gardenia entered a new market, it established a preferred provider organization (PPO), a health maintenance organization (HMO), and a point-of-service product (POS) to serve the plan members in this market. All of the providers included in the HMO or the POS are included in the broader provider panel of the PPO. The POS will be a typical two-level POS that offers a cost-based incentive plans for PCPs, and the HMO is a typical staff model HMO.

One statement that can correctly be made about Gardenia’s two-level POS product is that

Options:

A.

members who self-refer without first seeing their PCPs will receive no benefits

B.

both Gardenia and the PCPs stand to benefit if the non-provider panels are kept relatively narrow

C.

members will pay higher coinsurance or copayments if they first see their PCPs each time

D.

the plan offers no financial incentives to members to choose an in-network specialist over a non-network specialist

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Questions 26

Jay Mercer is covered under his health plan’s vision care plan, which includes coverage for clinical eye care but not for routine eye care. Recently, Mr. Mercer had a general eye examination and got a prescription for corrective lenses. Mr. Mercer’s vision care plan will cover.

Options:

A.

both the general eye examination and the prescription for corrective lenses

B.

the general eye examination only

C.

the prescription for corrective lenses only

D.

neither the general eye examination nor the prescription for corrective lenses

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Questions 27

The following statements are about the specialist component of a provider panel. Select the answer choice containing the correct statement.

Options:

A.

Ideally, a health plan should have every specialist category represented on its provider panel with appropriate geographic distribution.

B.

Most specialist contracts do not ensure the provider’s adherence to UM policies set up by the health plan.

C.

No-balance-billing clauses are not desirable in health plan contracts with specialists.

D.

In geographic regions where there is a shortage of PCPs, a health plan is not permitted to contract with specialists to perform primary care services, even for patients with chronic conditions.

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Questions 28

The Aegean Health Plan delegated its utilization management (UM) program to the Silhouette IPA. Silhouette, in turn, transferred authority for case management to Brandon Health Services. In this situation, Brandon is best described as the

Options:

A.

delegator, and Aegean is ultimately responsible for Brandon’s performance

B.

delegator, and Silhouette is ultimately responsible for Brandon’s performance

C.

subdelegate, and Aegean is ultimately responsible for Brandon’s performance

D.

subdelegate, and Silhouette is ultimately responsible for Brandon’s performance

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Questions 29

Determine whether the following statement is true or false:

The NCQA has established a Physician Organization Certification (POC) program for the purpose of certifying medical groups and independent practice associations for delegation of certain NCQA standards, including data collection and verification for credentialing and recredentialing.

Options:

A.

True

B.

False

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Questions 30

The following statements are about the negotiation process of provider contracting. Three of the statements are true and one of the statements is false. Select the answer choice containing the FALSE statement.

Options:

A.

While preparing for negotiations, the health plan usually sends the provider an application to join the provider network, a list of credentialing requirements, and a copy of the proposed provider contract, which may or may not include the proposed reimbursement schedule.

B.

In general, the ideal negotiating style for provider contracting is a collaborative approach.

C.

Typically, the health plan and the provider negotiate the reimbursement arrangement between the parties before they negotiate the scope of services and the contract language.

D.

The actual signing of the provider contract typically takes place after negotiations are completed.

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Exam Code: AHM-530
Exam Name: Network Management
Last Update: May 1, 2024
Questions: 202
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